HSAs & IRAs

What is an HSA?

A Health Savings Account (HSA) is a great way to save for your qualified health care deductible and expenses, while taking advantage of tax savings.

Who is Eligible for an HSA?

To be eligible and qualify for an HSA, you must meet the following requirements:

You are covered under a high-deductible health plan (HDHP) on the first day of that month.

You are not covered under another type of health plan that is not an HDHP (certain exceptions apply).

You are not enrolled in Medicare (generally, are under 65 yrs. old).

You may not be claimed as a dependent on another individual's tax return.

Why Choose an HSA?

The High Deductible Health Plans generally costs less than traditional health care coverage.

Money saved on the insurance premium can be put into the HSA.

Contributions to your HSA are tax deductible.

After age 65, HSA funds can be used for non-qualified expenses without penalty. Only income tax is assessed.

Use the pre-tax funds in your HSA to pay for current medical expenses or expenses that your insurance may not cover including dental expenses, vision care, Medicare expenses, and long term care. See Publication 502 on the IRS website for a complete list of qualified expenses.

Save the money in your HSA for future medical expenses.

No use it or lose it philosophy - the HSA funds remain in the account from year to year. Even if your HSA compatible coverage ends, you can still use the funds tax free for qualified medical expenses.

You are in control of your HSA. Funds belong to you even if you switch jobs, become unemployed, or change your medical coverage.

Is an IRA right for you?

Enjoy tax savings with an Individual Retirement Account (IRA) by deducting your qualified contributions from your taxable income. Many people can deduct all or part of their IRA contributions, depending on your income, marital status and whether you're an active participant in an employer sponsored plan as defined by the Internal Revenue Service. There are different types of IRAs, so be sure to consult your tax advisor to review your eligibility.

Save today for a better tomorrow. Regardless of the amount you'll be able to save now on taxes, an IRA is a smart way for you to save for a secure retirement.

If you are changing employers, an IRA rollover makes sense. If you are retiring or changing jobs and anticipate withdrawing money from your employer's retirement plan, you can avoid withdrawal penalties by transferring your assets into an IRA or another qualified plan.